15th Apr 2014 11:33
LONDON (Alliance News) - Alexander Mining PLC said that Ebullio Group has terminated its takeover deal of Red Crescent Resources Ltd in Turkey.
The mining and mineral processing technology company said last month that it had been completing technical test work on a bulk sample provided from the Sivas copper, Tufanbeyli and Hakkari zinc properties in Turkey, which form part of the assets of Red Crescent.
Ebullio Group had also signed a conditional agreement to acquire all of the assets of Red Crescent, which was scheduled for completion on March 26.
Ebullio planed to build a low cost plant using Alexander Mining's Ammleach technology to process ore from the Red Crescent Resources zinc properties and to support high quality zinc cathode into the Turkish market.
However, Alexander Mining said Tuesday that Ebullio Group has terminated its agreement to acquire all of the assets in Turkey of Red Crescent Resources.
Alexander Mining shares dropped 18% at 4.00 pence early Tuesday afternoon.
It said that the termination of the Red Crescent acquisition does not alter Ebullio's commitment to mining investment in Turkey, and confirmed the companies' mutual intention to maintain the commercial, technical and financial principles of the agreement.
Alexander said that they will meet shortly to discuss the revision of the agreement.
"Ebullio remains Alexander's largest shareholder and our commitment to them and their technology is unwavering. We have not changed our dedication to developing the close working relationship with Alexander," said Ebullio's Executive Managing Partner, Lars Steffensen in a statement.
Steffensen said that the company remains focused on establishing a profitable commercial scale zinc cathode production plant in Turkey, using Alexander Mining's AmmLeach technology.
"The intention would be for a plant taking feed from a combination of the future acquisition of suitably attractive zinc oxide properties and third party sources," he added.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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